State-backed Allied Irish Bank (AIB) has confirmed the appointment of Richard Pym as its next chairman ahead of its potential reprivatisation next year.

Mr Pym is currently serving as chairman of the Co-operative Bank and is also chairman of UK Asset Resolution (UKAR), Britain's 'bad bank. which is winding down the loan books of rescued Northern Rock and Bradford & Bingley, a position he will maintain.

He will take over at AIB from former HSBC executive David Hodgkinson in October.

Privatisation: The Irish government hopes to be able to reprivatise Allied Irish Bank next year

Mr Hodgkinson has been chairman of AIB since October 2010, which was two months before Ireland entered an EU/IMF bailout that sought to clean up the country's banks after years of reckless lending in the sector was exposed by a devastating property crash.

AIB has cost taxpayers more than €20billion (£16billion), the most given to any lender that survived Ireland's debt crisis, but it returned to profit in the first quarter of 2014 after a cost-cutting drive led by Hodgkinson and chief executive David Duffy.

Mr Duffy said last month that he would remain as chief executive of the bank after signing a permanent contract.

Mr Pym, who had already said he would step down from his role at the Co-op bank this year, was chief executive of Alliance & Leicester for five years until 2007, stepping down just before the financial crisis hit and a year before it was bought by Spain's Santander at a knock-down price.

Separately the Co-operative Bank said today it is to revitalise a policy which sits at the heart of its values and ethics as its battle to rebuild customer trust continues.

The bank said recent customer survey on its ethical policy received a record 73,000 responses.

The policy was first launched in 1992 and it covers human rights, international development, ecological impact, animal welfare and social enterprise.

Bad Bank: Richard Pym will keep his job as chairman of Britain's bad bank UK Asset Resolution, when he becomes chairman of AIB later this year

In line with customers' ethical concerns, the Co-op restricts its financial activities to certain areas as well as committing to provide money for organisations seen as having a positive community, social and environmental impact.

The latest survey marks the fifth time that the Co-op has reviewed its policy. It has also gauged opinion around three new areas - responsible banking, transparency and treating customers fairly.

The Co-op plans to work with the Institute for Public Policy Research in the coming weeks to analyse the results of the survey and develop a new ethical policy, which will keep elements of the existing one as well as looking at how it might be extended. The new policy will be launched to customers in September.

In February, the scandal-hit Co-op launched a new fight to win back customers and rebuild its ethical reputation with a £125 current account switching offer which includes a donation to charity.

Customers who switch their current account to the Co-op will get £100 and they will also be able to donate a further £25 to a choice of good causes.

Last autumn, the Co-op admitted it was shedding current account customers as its reputation took a battering following financial turmoil and the drugs scandal involving former chairman Paul Flowers.

Niall Booker, chief executive of the Co-operative Bank, said today: ‘I'm delighted that we've had such a strong response from our customers and colleagues.

‘It shows just how much importance people place on our values and ethics as we continue to transform the bank and rebuild trust in the banking sector.

‘Values and ethics sit at the very heart of the Co-operative Bank and are what makes us different from other banks. The results of this poll will now help us to focus our activity in a way that reflects our customers' views.’